The first oil from the giant Johan Sverdrup field that is in the North Sea has arrived at the Mongstad Plant north of Bergen. The plant is celebrating the event.
“This is a great day for Equinor and the Johan Sverdrup partnership, consisting of Lundin Norway, Petoro, Aker BP and Total. First oil to Mongstad only a few days after production start confirms that the field is producing well. This day also marks the start of a new phase as we prepare to bring Johan Sverdrup oil to the international market,” says Irene Rummelhoff, executive vice president for Marketing, Midstream & Processing (MMP) in Equinor.
The oil is piped from a distance of 283km from the North Sea Johan Sverdrup field. It is stored in caverns and prepared for shipping to the markets in the world at the Mongstad complex.
The first cargo for the customers in Asia is expected to leave this week. It contains an approximate of one million barrels that has a market value of about USD 60 millions or more than half a billion NOX at the present prices of oil. It is expected that the future barrels might contain about 600,000-2 million barrels.
“Oil from Johan Sverdrup is expected to provide revenue of more than NOK 1400 billion for the next 50 years, of which more than NOK 900 billion will go to the Norwegian state and society. Mongstad will play an important role in realising this value. At the same time, Johan Sverdrup triggers high activity at the plant and new opportunities for the future,” says Rummelhoff.
Power is received by Johan Sverdrup from the shore thus; oil here can be produced with very low emissions of climate gas that is about one kilogram of CO2 for every barrel.
After the first development phase reaching the highest production, the Mongstad plant is expected to receive an approximate of 440,000 barrels of oil per day from Johan Sverdrup. With the second phase being complete in 2022, 660,000 barrels of oil per day will be received by Mongstad. When the Johan Sverdrup will start operating at its full capacity, more than 30 percent of the total oil will be received by Mongstad from the Norwegian continental shelf. For Mongstad, Johan Sverdrup is a way to higher activity and new opportunities, which are an important plant for the company, and it will also help to strengthen the importance of Equinor’s onshore activities in Norway.
Many people including the employees of Equinor and many suppliers were a part of the preparation for receiving the oil from Johan Sverdrup.
“This is a big day for everyone who has worked for a long time on preparing Mongstad for oil from Johan Sverdrup. It has been a major effort involving plant modifications and completion of pipes. The work has been carried out properly and efficiently. As head of Mongstad I am proud of the great effort leading up to this day,” says Rasmus F. Wille, vice president for the Mongstad complex.